A sharp supply reset is setting up a materially tighter market in 2026, with deliveries projected to fall 70% to about 615 units after an above-average 2025, reflecting the steep drop in starts and under construction inventory.
Demand has proven resilient and is now running ahead of new supply, with 2025 net absorption well above the market’s long-run average and 2026 absorption expected to remain near trend, supporting a shift from softening fundamentals toward stabilization.
Rent trends and occupancy are expected to improve gradually, with rents turning modestly positive by late 2026 and occupancy stabilizing near current levels before edging higher as supply pressure fades and economic drivers in defense, space, and healthcare remain supportive.
Colorado Springs’ short-term rental market outlook is supported by durable demand anchors that should keep the metro on a steady path toward stabilization...
